Lee Limited Began Operations on January 1, 2019 What Is the Correct Cost of Goods Sold for 2020

Multiple Choice

Lee Limited began operations on January 1, 2019. The following data relate to the company's first 2 years in business: $$\begin{array} { | l | r | r | } \hline \text { Inventory } & \text { Reported Amount } & \text { Correct Amount } \\\hline \text { December } 31,2019 & 25,000 & 20,000 \\\hline \text { December } 31,2020 & 35,000 & 30,000 \\\hline \text { Cost of goods sold } & & \\\hline \text { For } 2019 & 400,000 & ? ? ? ? ? ? \\\hline \text { For } 2020 & 450,000 & ? ? ? ? ? ? \\\hline\end{array}$$ What is the correct cost of goods sold for 2020?

A) $400,000
B) $405,000
C) $450,000
D) $460,000